Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 1.5% dividend yield, Williams-Sonoma, Inc. has a fair value of $69.66 based on NTM EPS (FY2026) of $8.71. The current PEG ratio is 2.71.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 6.2% |
| Dividend Yield | +1.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $8.71 |
| Fair Value | $69.66 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $8.84 | — | — |
| FY2026E | $8.71 | -1.5% | 13 |
| FY2027E | $9.27 | +6.5% | 14 |
| FY2028E | $10.12 | +9.2% | 12 |
| FY2029E | $11.23 | +11.0% | 7 |
4Y Forward EPS CAGR: 6.2%
| Year | Net Income | EPS | YoY |
|---|
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2021 | $1.1B | $7.38 | — |
| FY2022 | $1.1B | $8.16 | +10.7% |
| FY2023 | $949.8M | $7.28 | -10.8% |
| FY2024 | $1.1B | $8.79 | +20.7% |
| FY2025 | $1.1B | $8.84 | +0.6% |
4Y Historical EPS CAGR: 4.6%